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My issue, which has been outstanding for ever is seems, is with Xero's subscription invoice. I have itemized the invoice to assign the subscription charges to the client and that is where the GST calculation variances cause issues. As a work around I have been reconciling the Xero invoice with a slightly different amount and putting the variance (GST rounding) to small balance adjustment. It makes no difference whether line items are entered GST inclusive or exclusive.

Our client cannot pay two invoices because their system calculates the GST correctly and ours (Xero) doesn't. Payment is getting rejected.

Two invoices out by about 10c

I've been given the option of adjusting by line, but that doesn't amend the GST component it ameands the line item.

Am I being slow here?
Please let us make small adjustments to GST only. Or better still, calculate from total, rather than each line item.

There is obviously a recurring issue here, but I am not sure about having the ability to edit the GST amount, as misuse could have severe consequences (we would at least need to be able to restrict it in user permissions).
My issue was that the client defaulted to GST exclusive invoicing, including Products and Services set as exclusive, but the invoice total would not reach a round number - it was either $149.99 or $150.01 - even with just one line item.
The unit price can be adjusted to 4 decimal places, but changing that didn't help - the totals seem to be locked into 2dp.
Looking at comments below, the issue compounds with more line items.
A solution could be to provide variable settings that can be adjusted depending on which figure needs to be exact, for example:
Calulate GST based on:
- Invoice Total
- Invoice Subtotal
- Each line item

If calculated on the total, the rounding variance would need to be automatically spread across the line items.

Another option could be to have the ability to manually add a small variance to an invoice without having to have a specific line item showing on the invoice. An invoice could have the option to "add rounding adjustment" to either the total and/or the GST amount. It could be like the Minor Adjustment field while reconciling, but available to allow invoices to be tidied up before sending.

I totally agreed with them.
Please note that the GST rounding shown on each line should not be simply summed to calculate the total GST amount. The total GST should be calculated accurately based on the correct amount.

My apology, I was referring to invoicing where this is also an issue. The manual adjustment of bills may be a handy workaround however the same logic applies - can Xero not simply code the software to not round off each line item, opting rather to display only the first 2 decimal places without removing or rounding any of the lower decimal places? In that way when the total of all the lines is calculated it is factoring in the exact GST for each line item, summing to a total. The total can then be rounded once, in line with IRD's methodology and conventional wisdom.

I agree with many of the comments below: This should not require manual adjusting by users. The software should be coded to provide the accurate calculation of the total GST, the total being rounded only once at the end. Each line item should not be rounded, rather only displaying the 2 decimal places with the rest not displayed but not rounded off. Very embarrassing to have customers reaching out about an "error" in our invoiced GST amount every time.

Agree with all the comments. The ability to adjust GST would be very helpful!

So Xero well done
Lets just round out GST calculations on each line so if multiple lines are used it will mess up the end result, bravo

You need to make sure calculations are not rounded so this does not happen

Not very professional on Xero'"s behalf to ask the customer to "adjust" what is a simple calculation that should be coded correctly in the beginning.

and to know about it yet do nothing to fix it

Yes, very unprofessional to have a customer tells us our invoice is wrong and then not be able to correct the invoice properly. They will not accept any rounding!
It's a basic that should not be an issue.

There should be an option to calculate GST either by line or subtotal.

Issuing an invoice with the incorrect value of GST on it - it's not a very professional look for us or for Xero.

Having customers tell us our GST calculation is wrong is a bit embarassing. it can be tidied up with a couple of adustment lines (one with no GST) but this looks terrible.

This is crucial. If I have more than 10 lines in my invoice I am greater than 10c out in the gst calculation due to rounding which is larger than the suggested rounding reconciliation value?? Looks very unprofessional

Yes please. It's very annoying.

Yes, please. Rounding errors caused by GST calculations are the bane of my billing